In the marijuana space this week, two of Canada’s big-name cannabis producers provided updates on their respective beverage businesses.
The opportunity attached to cannabis drinks has fluctuated from mere fad to potentially key for the industry, and now Aphria (NASDAQ:APHA,TSX:APHA) and Canopy Growth (NYSE:CGC,TSX:WEED) are ready to share more about their plans.
Keep reading to find out more cannabis highlights from the past five days.
Aphria and Canopy make beverage moves
In an unexpected move, Aphria has elected to acquire SweetWater Brewing Company in a deal that according to the producer is worth US$300 million. The Aphria management team wasn’t shy in confirming this acquisition was done in anticipation of an entry into the US market.
“We will establish and grow our US presence through SweetWater’s robust, profitable platform of craft brewing innovation, manufacturing, marketing and distribution expertise,” Irwin Simon, Aphria’s chairman and CEO, said in a statement.
The executive explained that Aphria plans to leverage its existing brand portfolio with the sole intention of building awareness ahead of potential legalization in the country, which would allow it to enter the market.
Freddy Bensch, SweetWater’s founder and CEO, said his firm has brands that complement Aphria’s cannabis business. The brewing company has moved ahead in experimenting with craft brews using terpenes and hemp flavors to recreate “flavors and aromas of popular cannabis strains.”
Meanwhile, fellow Canadian producer Canopy Growth indicated this week that it plans to upsize its offerings with a new lineup of CBD drinks called Quatreau. The lineup will include four different flavors, and will be the first primary CBD drink collection from Canopy Growth.
“We created Quatreau as an alternative to sugary, caffeinated beverages or even alcohol,” David Klein, CEO of Canopy Growth, said in a statement.
Earlier this year, analysts at CIBC Capital Markets issued a note to investors saying they don’t expect to see cannabis drinks evolve into a leading marketplace item for consumers until regulations change around their availability. Until then, the analysts believe these beverage offerings will remain a niche product.
Cannabis company news
- TerrAscend (CSE:TER,OTCQX:TRSSF) went ahead and released preliminary results from its latest quarter, indicating net sales of C$51 million.
- PharmaCielo (TSXV:PCLO,OTCQX:PCLOF) upsized a planned placement offering from C$5 million to C$10 million. The company will issue 20 million shares at a price of C$0.50 each.
- The Valens Company (TSX:VLNS,OTCQX:VLNCF) confirmed that its subsidiary has obtained wholesale licenses to begin offering medical cannabis products in Australia.
- 48North Cannabis (TSXV:NRTH) released year-end results for its 2020 fiscal year and provided guidance for the first quarter of its 2021 fiscal year.
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Securities Disclosure: I, Bryan Mc Govern, hold no direct investment interest in any company mentioned in this article.